India’s business landscape is currently shaped by rapid technological change, shifting workforce demographics and a renewed focus on talent as the key to growth. As businesses prioritise agile growth and innovation, the HR function must evolve from a traditional role to a strategic partner, driving value across talent, technology and business success.

For HR and business leaders aiming to stay ahead, understanding these changes and adapting strategies will be essential for sustainable growth. The SHRPA State of HR Industry 2025 survey captures this moment of transformation, and we invite India’s HR and business leaders to participate in the survey and help shape the future of work. In its second edition, the SHRPA State of HR Industry survey will offer a comprehensive view of India’s evolving HR landscape. This report is more than just data; it’s a vital resource providing actionable insights, a roadmap for technological advancement and foresight into emerging trends.

Contribute to the survey today and make your voice count. 

India’s unique HR and business challenges: A closer look 

India’s vast and diverse workforce brings unique HR challenges and opportunities. Rapid digital transformation and a large young population make talent acquisition, development and retention critical for business success. As we uncovered in last year’s People Matters SHRPA State of the HR report, technological advancement, growth in consumer spending and labour market shifts are the top external forces impacting business outlook for 2025. Yet, even as HR leaders demonstrate high levels of change readiness (80% reporting satisfaction with adaptability and alignment of talent strategies) there remains a critical gap in execution, particularly in deploying digital and AI-driven talent initiatives. In 2025, these execution challenges are dictating top industry trends and driving HR strategy and solutions:

• Talent shortages and disengagement: Korn Ferry forecasts a global talent shortage of 85 million by 2030, and India faces acute talent gaps in emerging fields like  AI, machine learning and cybersecurity. This is shifting HR from traditional recruitment to prioritising retention, talent development and upskilling. The “Great Resignation” has also driven higher attrition, notably in the IT industry, recently. Aon reported a 21.4% average attrition rate in 2023, underscoring the need for robust engagement and retention strategies.
• Changing workforce dynamics: India’s demographic dividend requires equipping a large, young workforce with future-ready skills; however, only a small fraction have received formal training. Upskilling and reskilling are essential to bridge skill gaps, particularly in digital fields. The gig economy is also expanding; with NITI Aayog projecting the gig workforce to reach 2.35 crore by 2029-30, up from 77 lakh in 2020-21, pushing HR to adapt strategies for contingent workforce management and integrating gig and permanent staff.
• Business challenges and uncertainties: Indian organisations face geopolitical uncertainties, supply chain disruptions and the need to innovate. The Reserve Bank of India highlights the balance between inflation and growth, driving HR to focus on cost efficiency, productivity and strategic alignment with business goals. ESG compliance is also gaining traction, and HR is vital in embedding ESG principles into culture, diversity, and ethical practices, supporting sustainability and reputation.
• Elevating HR-tech with AI: AI and data analytics are transforming HR by automating tasks and providing insights. While AI tools can streamline recruitment, reduce bias and help identify top candidates, people analytics can help predict turnover by analysing satisfaction and performance data. AI-driven chatbots and virtual assistants are improving the employee experience and handling HR queries. However, many Indian businesses are in early AI adoption stages, and HR tech skills gaps persist, highlighting the need for training and education.

The strategic evolution of HR: Key imperative for HR leaders in 2025

Indian HR leaders are increasingly expected to move beyond traditional administrative roles and become strategic partners in business growth. This is particularly evident in areas such as productivity enhancement through AI and digital transformation, where dissatisfaction with execution is most pronounced.

HR leaders in India must embrace both the challenges and the opportunities presented by these changing dynamics. As HR leaders recalibrate to focus on key priorities, they continue to grapple with:

1. Adapting to a tech-driven future: HR leaders must continue to integrate technology into their strategies without disrupting existing processes. While there is an increased focus on AI, automation and analytics, they aren’t able to translate its benefits into recruitment, retention and workforce management.

2. Developing a future-ready workforce: Upskilling and reskilling will be crucial in closing the talent gap. HR leaders must focus on creating a culture of continuous learning that empowers employees to grow alongside the organisation.

3. Strategic talent management: Given the talent shortages in critical sectors, it is essential to shift focus from just hiring for today’s needs to building a sustainable talent pipeline for tomorrow’s challenges. AI can help HR professionals forecast future talent needs and devise proactive strategies to meet them.

4. Fostering inclusion and diversity: As the workforce diversifies, there is an increasing need to implement inclusive HR policies that promote diversity in all its forms – be it gender, ethnicity or skillset. However, the DEI initiatives suffer a setback in Western nations, the challenge of sustaining these values has become very real. 

Share your thoughts with us - participate in the SHRPA State of HR Industry 2025 Survey today. 

Survey invitation: Share your insights for a comprehensive HR industry report

Your voice is crucial in understanding the evolving HR landscape in India and identifying future opportunities. Whether you're an HR leader, business executive or technology partner, your input will help us map the current state, pinpoint best practices and shape the future.

The SHRPA State of HR Industry 2025 survey is a valuable resource for the Indian HR community. By participating, you'll contribute to understanding the challenges and opportunities facing HR in India and help define the key imperatives for the future. Your insights will guide HR technology selection, AI impact and workforce trends. By joining the survey, you will:

• Benchmark India’s HR and technology maturity against global standards
• Share challenges, successes and priorities for 2025 and beyond
• Influence the next wave of HR technology innovation and investment
• Gain early access to insights that can shape your HR strategy

Join a community of forward-thinking leaders shaping the next chapter of India’s HR transformation.The survey will examine key areas like the HR Effectiveness Index, HR technology growth, and investment trends. For HR technology providers, our survey will captures insights into buyer decisions during technology selection, implementation, and adoption.

Participate in the SHRPA State of HR Industry 2025 survey to share your experiences and contribute to shaping the future of HR in India. Your responses are collected confidentially and will be used for identifying aggregate insights only.